Glendale Community College » Business Administration » BUSAD 120 - Business Law » Fall 2021

BUSAD 120 - Business Law » Fall 2021 » Chapter 16 Quiz

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Question #1

In an effort to prevent fraud, the Statute of Frauds denies enforceability to certain contracts that do not comply with its requirements.

A. TRUE

B. FALSE

Question #2

Lumber LLC files a suit against Mill Company to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

A. Lumber foreseeably and justifiably relied on Mill’s promise.

B. Mill denies the existence of any contract.

C. the deal does not involve customized goods.

D. neither party has begun to perform.

Question #3

A memorandum evidencing an oral contract must contain every term of the deal to be enforceable.

A. FALSE

B. TRUE

Question #4

A contract for the sale of land does not ordinarily include physical objects attached to the real property, such as buildings, fences, and trees.

A. FALSE

B. TRUE

Question #5

Grain Co-op LLC and Hearty Cereals Inc. discuss the terms of a contract for deliveries of corn over a two-year period. This transaction falls within the provision of the Statute of Frauds involving

A. all of the choices.

B. transfers of interests in real property.

C. the one-year rule.

D. collateral promises.

Question #6

To cater a holiday banquet, Food Service LLC agrees to buy one hundred pumpkin pies from Great Desserts Inc. To be enforceable, the agreement must be in writing if the pies cost at least

A. $500.

B. $499.

C. $250.

D. $100.

Question #7

An agreement subject to the writing requirement must be written on paper.

A. TRUE

B. FALSE

Question #8

An oral contract that would otherwise be unenforceable under the Statute of Frauds will not be enforced under the doctrine of promissory estoppel.

A. TRUE

B. FALSE

Question #9

To be enforceable, a contract that is required to be in writing must include

A. no particular signatures.

B. the signature of the party who is seeking enforcement.

C. the signatures of all of the parties to the agreement.

D. the signature of the party against whom enforcement is sought.

Question #10

An oral sales contract for goods priced at less than $500 is unenforceable.

A. TRUE

B. FALSE

Question #11

Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood’s blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

A. the preliminary terms.

B. the quality terms.

C. all terms.

D. the essential terms.

Question #12

Blake and Carla sign a contract for the sale of Blake’s Bakery to Carla. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement. In a dispute between the parties, with respect to the terms, a court is most likely to admit evidence that is

A. ambiguous.

B. consistent.

C. clear.

D. contradictory.

Question #13

Parol evidence can be introduced at trial to correct an obvious clerical error in a contract if the error clearly does not represent the parties’ agreement.

A. FALSE

B. TRUE

Question #14

A contract must be in writing to be enforceable if it cannot by its terms be performed within one year from the day after the contract’s formation.

A. FALSE

B. TRUE

Question #15

A. exclude the evidence.

B. strike a balance between the evidence and the written terms.

C. reform the written terms to match the evidence.

D. dismiss the case.

Question #16

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove’s facilities for two years. This contract is enforceable by

B. none of the choices.

C. Banyan Grove.

D. Air Flo.

E. any third party, such as a HVAC supplies provider.

Question #17

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of

A. the tablet only.

B. the shoes and the tablet only.

C. the books only.

D. the books, the shoes, and the tablet.

Question #18

A. TRUE

B. FALSE

Question #19

Hardware Store Company and Indestructible Tools Inc. sign a written contract for a sale of goods. To be enforceable, this written contract must include

A. a quantity term, such as “50 hammers” or “100 boxes of assorted nails.”

B. the parties’ contact information.

C. a correct title, such as “Purchase Order” or “Sales Invoice.”

D. a date, such as “October 2019” or “10/2019.”

Question #20

To clarify the terms of a written contract, a court will admit any parol evidence.

A. TRUE

B. FALSE

Question #21

The purpose of the Statue of Frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms.

A. FALSE

B. TRUE

Question #22

An oral contract that should be in writing to be enforceable under the Statute of Frauds may be enforceable if it has been partially performed.

A. FALSE

B. TRUE

Question #23

A party who seeks the performance of an oral contract must prove that the contract existed.

A. FALSE

B. TRUE

Question #24

A party’s signature must be at the end of a writing for the writing to constitute an enforceable contract.

A. FALSE

B. TRUE

Question #25

Under the Statute of Frauds, a contract involving an interest in land must be in writing to be enforceable.

A. FALSE

B. TRUE

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